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Dublin: 5°C Monday 19 April 2021

More than €10million collected in PRSI overcharge

Thousands of people were due an average refund of €385 each after paying a health levy they were not liable for.

Image: Images_of_Money via Flickr

THE DEPARTMENT OF Social Protection has handed back more than €10million to taxpayers after collecting a health levy they were not liable for.

Some 26,000 people were refunded an average of €385 each after the contribution was collected in the three years up to 2010. It’s not known how many refund applications are left to process.

In a statement, the Department said it was “difficult to be precise” about how many individuals would be eligible for a refund.

The confusion arose because the levy was collected from people who earned more than €500 in any week in 2008, 2009 or 2010.

However, if they were paid less than €26,000 total that year, they could claim a refund of the health contribution.

In the statement, the Department said the money was “properly deducted” in the first instance, but some people were due a refund.

The system has now been changed, with the health contribution folded into the Universal Social Charge.

More: Nearly half of Irish millionaires paid under 30 per cent tax>

About the author:

Michael Freeman

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